Exercise 8-3 (Algo) Preparing flexible budgets LO P1

Tempo Company's fixed budget (based on sales of 14,000 units) folllows.

Fixed Budget
Sales (14,000 units $206 per unit)	2,884,000
Costs
Direct materials	350,000
Direct labor	616,000
Indirect materials	378,000
Supervisor salary	150,000
Sales commissions	98,000
Shipping	196,000
Administrative salaries	200,000
DepreciationOffice equipment	170,000
Insurance	140,000
Office rent	150,000
Income	436,000

1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units.

Tempo Company's fixed budget (based on sales of 14,000 units) folllows. 2,884,000 Fixed Budget Sales (14,000 units X $206 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Insurance Office rent Income 350,000 616,000 378,000 150,000 98,000 196,000 200,000 170,000 140,000 150,000 436,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total variable cost per unit. Total variable cost per unit Tempo Company's fixed budget (based on sales of 14.000 units) folllows. 2,884,000 Fixed Budget Sales (14,000 units X $206 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Insurance Office rent Income 350,000 616,000 378,000 150,000 98,000 196,000 200,000 170,000 140,000 150,000 436,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute total fixed costs. Total fixed costs Exercise 8-3 (Algo) Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 14.000 units) folllows. Fixed Budget Sales (14,800 units * $205 per unit) 2,884, eee Costs Direct materials 350, eee Direct labor 616,000 Indirect materials 378, eee Supervisor salary 150, eee Sales commissions 98,eee Shipping 196,800 Administrative salaries 200, eee Depreciation-office equipment 170, eee Insurance 140, eee Office rent 150,000 Income 436, eee 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 12,000 units and 16,000 units. TEMPO COMPANY Flexible Budget Flexible Budget for Variable Amount Total Fixed Units Sales Unit Sales of per Unit Cost of 12,000 16,000 Variable costs 0.00 0 Fixed costs $ 0 $ 0 $ 0